Changzhou Almaden Co.,Ltd.(Almaden,002623.SZ),a company primarily engaged in the production and sale of photovoltaic glass and coating materials,has announced its intention to terminate the acquisition of 100%of the equity of Fengyang Silicon Valley Intelligence Co.,Ltd.(Fengyang),which is currently owned by Shanghai Lingda and Yancheng Daling.

The transaction was designed to be a significant asset reorganization.Almaden has earmarked the issuance of shares to a maximum of 35 qualifying special purpose entities as a means of raising funds.Almaden's objective was to ensure a stable supply of PV glass,given that Fengyang's core business is the production,research and development,and sale of raw glass flakes.Prior to this transaction,Almaden's core business was the deep processing of photovoltaic glass,rather than the production of photovoltaic glass,which is mainly purchased.Furthermore,the company's core business operations will remain largely unaffected.

However,following a comprehensive review of the current status of the PV industry,the capital market environment and relevant policy changes,Almaden has decided to terminate the transaction and has signed the relevant termination agreement with the parties to the transaction.

This is Almaden's second attempt to acquire Fengyang.Almaden had planned to acquire 100%of Fengyang by the end of 2021,when the valuation of Fengyang was 2.5 billion yuan,representing a significant premium of 261%over the net assets.In December 2022,Almaden announced the termination of the acquisition.

In November 2023,Almaden announced a second acquisition of Fengyang,with the transaction price reduced from 2.5 billion to 1.25 billion.However,the acquisition ultimately proved unsuccessful.Almaden has stated that the operation of its various businesses is normal,and that the termination of this transaction will not have an adverse impact on its existing production and operational activities or strategic development.

（Picture: Veer）